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The purpose of a mortgage note is to establish the existence of debt between the lender and the borrower. This legal document serves as a formal acknowledgement by the borrower of the amount borrowed and the obligation to repay the loan under specified terms. It includes critical details such as the loan amount, interest rate, repayment schedule, and what happens in the event of default. This clear articulation of the debt agreement is crucial in the lending process, as it protects the lender's rights in case the borrower fails to make payments and provides a framework for enforcing those rights.

The other options do not accurately represent the primary function of a mortgage note. Providing property insurance is related to protecting the asset but does not pertain to the debt itself. Outlining property management responsibilities pertains to the operational aspects of property management rather than the loan agreement. Negotiating loan terms, while a part of the lending process, occurs prior to the signing of the mortgage note and is not the note's purpose. Thus, the mortgage note fundamentally serves to document and validate the financial transaction between the lender and borrower.